According to a report published by UBS, Daxin Financial's basic profit last year beat expectations. Net interest spreads rose 13 points to 1.6% from 1.47% in the first half of the year, and net interest income increased 15% from the first half of the year. UBS raised its target price from 42.2 yuan to 43 yuan, maintaining a “neutral” rating.

According to the report, Daxin Financial's capital cost to revenue ratio remained over 60% last year, but UBS expects its operating expenses to increase by 10% year-on-year this year, so whether the cost-to-revenue ratio continues to improve in the future will be the key for the stock to be further re-evaluated.